Bitcoin Futures ring back liquidity amid quiet market  

The world might have to wait for a while until normal order resumes, but in the Bitcoin derivatives market, panic is seeping away, for better or for worse.

Last week, on 12 March, Bitcoin saw its worst price drop in 7 years, losing a third of its value in less than a day. Futures traders, in a bid to capitalize on the volatility, or rather to salvage some returns, sold off their positions, pushing volume up over $30 billion and pushing Open Interest down.

This collective and severe trading and volatility rush saw massively skewed trades, given the rapid nature of the price depreciation. In a matter of just two days, derivatives exchanges saw their B/O spread rise to significant month-long highs as imminent price movement was anyone’s guess. But, now it looks like liquidity is returning.

According to data from Skew markets, the B/O spread for major exchanges, those catering to deep-pocketed and retail investors, are simmering down. BitMEX, the Seychelles-based derivatives exchanges known for its tight trading, saw its $10 million B/O spread surge to 4.07 percent on 13 March, while the average for the past three months stood at 0.42 percent. At press time, the spread had dropped to 1.57 percent.

Full story: https://eng.ambcrypto.com/bitcoin-futures-ring-back-liquidity-amid-quiet-market/